Economic life cycle analysis


LIFE CYCLE COST ANALYSIS & ENERGY MANAGEMENT: Gerald Spencer, P.E. has personally prepared more than 100 formal energy consumption analysis reports for federally-funded construction projects since 1968 in accordance with Energy Life Cycle Cost Analysis justification principals that comply with the DoD, GSA, DOS, and NASA guidelines where Spencer Engineers was the Architect Engineer of Record and/or Gerald Spencer, P.E. was the Engineer Of Record (EOR) for the economic justification of our design decisions concerning the energy consuming systems required for these construction projects.  

Gerald Spencer, P.E. has personally prepared all of the formal
Life Cycle Cost Analysis justification reports for all of the projects that were prepared for the clients of
Spencer Dunaway Jones & Smith and Spencer Engineers, Inc.

Gerald Spencer, P.E. has prepared Life Cycle Cost Analysis justification formal reports for the federal government where the federal government cost analysis experts reviewed and commented on these reports. These reports were reviewed, and accepted as being in compliance with the DoD Criteria, NASA-JSC Construction Criteria, Corps of Engineers Technical Manuals, Department of State Design Guidelines, General Services Administration, U. S. Postal Service, plus other rules and regulations governing
Energy Life Cycle Cost Analysis and energy management. 

Gerald Spencer, P.E. has also prepared more than 80 formal computer generated Energy Consumption Analysis Reports for documentation proving compliance with ASHRAE 90 since 1980.

Gerald Spencer, P.E. has also prepared reports and analysis of proposed buildings to indicate compliance with the requirements of the Texas Energy Code. 

Prior to 1980, Gerald Spencer, P.E. prepared hand calculated
Life Cycle Cost Analysis justification&energy consumption analysis for many facilities including the FBI academy 1965 at Quantico, Virginia; Federal Courthouse and Office Building, San Antonio, Texas 1965; FAA control tower and TRACON facilities at DFW airport, Texas 1971; plus several commercial and privately funded reports for non-federally funded projects.  These reports compared various HVAC systems on a Life Cycle Cost Analysis (LCCA) basis to determine the most cost effective systems to be constructed for each facility. 

These reports take into consideration all capital investment costs, operating costs, tax
costs, interestcosts, maintenance costsand replacement costs as a part of each life-cycle cost analysis report. 

Gerald Spencer, P.E.  also analyzes small subsystems such as adding capacitors to motors for power factor improvement and demand charges reduction.  We have in-house data processing capability and experience in preparing energy budgets and energy analysis by computer modeling.  Gerald Spencer, PE is experienced in the design of all of the various types of energy systems that control the cycling of energy consuming equipment according to a preset program for the optimum use of energy. 

Often a project will require the preparation of a formal report to economically justify the expenditure of funds for improvements or for new construction.  This report is used to justify and defend the design decisions. 

Gerald Spencer, PE always approaches life-cycle cost analysis
engineering with an open mind, and evaluate every conceivable capital, operation, maintenance and replacement cost option. 


1.  COMPUTER PROGRAMMED ENERGY CONSUMPTION MODELING: 
Gerald Spencer, PE provides energy consumption calculations by computer modeling each building that is planned.  Once we have this data inputted into our computer, we can easily ask "WHAT IF” questions concerning not only the equipment selection, operation, and configuration, but also questions concerning the construction or modification of the building.  We can provide a computer programmed energy consumption simulation model for any building using our in-house computer.  Existing Projects that have records of utility consumption and costs will allow us to vary the inputs of lights, people, and other variables until the energy consumption matches the historical data from the utility billings for a very accurate projection of future energy consumption with any proposed modifications.  This will allow us to ask “WHAT IF” questions, and get finite energy savings in BTU, KWH, KVA, from any and all proposed energy related modifications to the building.  Typical proposed considerations will be in the following areas, plus others that we think of when we get into the project.


2.  DEMAND CHARGE REDUCTION and POWER FACTOR IMPROVEMENTS:  Gerald Spencer, PE can provide design for automation for load shedding as required to reduce KVA demand charges by the power company.  This will require a system to monitor the KVA demand at the incoming electrical service with pulse meters that will constantly up-date a controller as to the present KVA Demand that is the basis for the electrical demand billing.  This Controller will cycle various non-critical loads off for relatively short periods of time so that the total measured demand at the point of metering is reduced.  The various loads will each receive a priority rating and the controller will selectively cycle the various loads at different times as required to reduce KVA Demand.  This can be a part of your EMCS, SCADA, or UCS system.

We can review your electric bills and observe the amount of additional costs that you are charged as penalty for your high KVA demand, low Power Factor (PF) and other charges due to your use of electrical service. These charges are normally because your PF is less than the 0.95 minimum PF that you (probably) agreed to as a part of your electrical service contract. You can normally reduce these charges if you construct modifications to your electrical systems to improve your PF. Electrical system operating protocol should also be reviewed for PF improvements to reduce your electrical bills. Every electrical power distribution company charges additional for their additional costs caused by low customer power factors.

This PF, KVA demand, and other factors are usually established annually as one factor of the basis for your demand distribution billing for the entire next year’s demand/distribution tariff part of each month’s total electrical bill. PF improvements made this year will not reduce your electric bill until usually 12 months from now.

It believe that it would benefit electrical energy consumers to to hire me to prepare a formal report that would economically justify them investing in various electrical construction of modifications to your electrical system(s) that would reduce your electrical distribution billing charges sufficiently to justify the capital investments for Power Factor modification, demand reduction, and operational improvements.

KWH, KVA, KVAR, PF. KW demand, KVA demand, Reactance, Capacitance, and other electrical technical billing factors are hard for non-technical people to understand, but saving money on their electrical bills if they lessen the reasons that the power company charges them additional money in addition to their energy charges on their bills can be easily understood by every adult. The goal of our technical reports is for any non-engineer adult to be able to make an economic decision based upon our engineering report.

I suggest preparing reports with a “cafeteria” format of options with a different ROI calculated for each electrical construction option. Some of these electrical construction modifications options will only consist of (low hanging fruit) options with very high ROIs.

Other electrical construction modification options with lower ROIs cannot be justified when these lower ROI electrical options offer less return when compared to other investment options. When S&L CDs, Bonds, and etc. offer greater ROI than the ROI for electrical construction modification options as investments, then these deposits are better investments as places to park your cash. Electrical construction modification investments are not easily portable or convertible to cash, so the ROI of electrical improvements must be much greater than the ROI of more secure and more fluid (S&L CDs, Bonds, and etc.) investments.

Electrical construction modification options as investments can and should be postponed until another era when interest rates might change to make the lower economic ROI of these less beneficial and less convertible electrical construction modification investment options become more favorable.


3.  INCANDESCENT LIGHTING:  We always try to minimize the use of incandescent lighting by substituting florescent (or HID) lighting to provide the same lighting levels with less wattage of energy usage everywhere possible.

4.  LIGHTING LEVELS: Gerald Spencer, P.E.  will review lighting levels in the site and justify any levels that are greater than the minimum requirement.


5.  INSULATION:  Gerald Spencer, P.E. will consider different thickness’ of Roof Insulation and Wall Insulation if economic life cycle cost analysis can justify the capitol expenditure.


6.  WINDOWS:  Gerald Spencer, P.E. always considers the following glass options:

6.1.   Different Reflective coatings

6.2.   Double pane insulating glass


7.  DESIGN THE BUILDING WITH LESS GLASS:  We do not wish to detract from the exterior or interior aesthetic appearance of any facility.  It would of course save energy to not provide any windows at all, and have only insulated walls, but the morale of the personnel would be reduced, and the personnel productivity would also be reduced.  We will provide architectural aesthetic opinions of the effect of any proposal that effects the visual appearance of the facility or that affects the habitable quality of any facility.


8.  REVIEW OPERATIONAL PROCEDURES:
 Review temperature settings, operational hours, manpower requirements, and all other.


9.  REVIEW MAINTENANCE PROCEDURES: 
Review expenditures, procedures, and schedules for maintenance.


10. AUTOMATION:  Provide automation for resetting of space temperatures with the use of programmable thermostats.


11. HEAT RECLAIM:  We will evaluate waste heat reclaim systems addition to the existing equipment.  Auxiliary condensers added to condensing units can be used to generate domestic hot water.


12. TREES FOR WINDOW SHADING:  We will consider the addition of trees that are located to shade the windows during the summer, to reduce the solar load on the windows.


13. OTHER UTILITY COST SAVINGS:  We will discover other areas that utility cost savings are possible when we get into this project.  These items will also be evaluated.


14. ECONOMIC ANALYSIS:  Gerald Spencer, P.E. provides life cycle costs of each option for the purpose of decision making for system selection.  Additional construction costs would be sometimes serve our clients better in a savings deposit rather than invested into more efficient energy consumption systems.

14.1.    CAPITAL EXPENDITURES:  Each proposed change to the facility will be evaluated on a Life Cycle Cost basis to determine the economic viability of each proposed change.  Each proposed change must stand alone on it’s own economic merit.

14.2.    OPERATION AND MAINTENANCE CHANGES:  Operations and Maintenance changes to the facility will also be evaluated on a Life Cycle Cost basis to determine the economic viability of each proposed change.

14.3.    ECONOMIC EVALUATION CRITERIA EXPERIENCE:  We are familiar with the Army and NASA economic criteria and guidelines for evaluating the various proposals for the modification of existing facilities.

14.4.    ECONOMIC EVALUATION CRITERIA:  We will work in cooperation with the USAF accounting department and other departments as required to develop economic criteria and guidelines for evaluating the various proposals for the construction of these new facilities.


15. ENERGY CONSUMPTION STUDIES: Examples of similar energy studies performed and documentation of energy savings in similar facilities performed recently are as follows:

15.1.    LACKLAND AFB - NEW INTELLIGENCE FACILITY - $1,500,000.00 - 2002

15.2.    LACKLAND AFB - REMODEL WHITE OAK DINING HALL - $3,100,000.00 - 2002

15.3.    LACKLAND AFB - HVAC STUDY BUILDINGS 1250, 1350, 1354, 1355, 6329, AND 6359 - $1,500,000.00 - 2002

15.4.    ASRM AIR CREW TRAINING FACILITY - CORPUS CHRISTI NAS, TX - $2,200,000 - U S NAVY - 1999

15.5.    VEHICLE MAINTENANCE FACILITY - CORPUS CHRISTI NAS, TX - $2,200,000 - U S NAVY - 1999

15.6.    MINE WARFARE CENTER - INGLESIDE, TEXAS - 1995 - $5,400,000 - U S NAVY - 1998

15.7.    AIR OPERATIONS BLDG 1770 ADDITION - KINGSVILLE NAS, TEXAS - $1,750,000 - U S NAVY - 1998

15.8.    CAMP BULLIS ARMORY - U S AIR FORCE - $800,000 - 1997

15.9.    AMDAHL CHAPEL - KELLY AFB, TX - $1,200,000 - 1995

15.10.  METROLOGY BUILDING ADDITION - $850,000 - NASA-JSC - 1994

15.11.  EXXON PRODUCTION RESEARCH FACILITY - BUFFALO SPEEDWAY - HOUSTON - EXXON, USA - 3250 TONS TOTAL:  Gerald Spencer, P.E. was the EOR a formal energy analysis project for that resulted in the economic justification of the construction of a new 750 ton super efficient base load water chilling machine to run 24 hrs per day as justified by life cycle cost analysis.  Additional capacity was required also.  Designed 12KV electrical primary indoor distribution system and sub-station to serve the central plant addition.  Prepared Energy Consumption calculations with computer simulation of the HVAC energy consumption for the proposed systems as required for economic Life Cycle Cost evaluation and selection of the most advantageous systems for construction.

15.12.  Gerald Spencer, PE is the EOR for performing many other
Energy Consumption Analysis and Energy projects mostly for EXXON-MOBIL EPR dating back to 1968


16. ENERGY BUDGET PREPARATION AND LIFE CYCLE COST EVALUATIONS:

16.1.    Gerald Spencer, PE is the EOR for performing Energy Budget Preparation in accordance with U S Army criteria defined in ETL-1110-3-309.

16.2.    Gerald Spencer, PE is the EOR for performing Energy Analysis and Life Cycle Energy Cost studies as required to determine the types of HVAC and other energy consuming systems to be installed in the new or existing facilities for the past 25 years.  Gerald Spencer has personal experience of an additional 5 years of performing Energy Analysis and Life Cycle Energy Cost studies prior to entering private practice in 1967.

16.3.    Gerald Spencer, PE is very experienced in the design of Energy Efficient Systems and modifications to existing systems as required to improve energy consumption efficiency for the HVAC and other energy consuming systems to be installed in the new or existing facilities.  We have been designing energy efficient HVAC systems for the past 25 years.

16.4.    Gerald Spencer, PE has been performing Energy Consumption Analysis and Energy Cost studies as required to determine Energy Budgets for HVAC systems since the inception of ASHRAE Standard 90 in 1980.  ASHRAE 90 is the basis for the Texas State Energy Code that became the state law in September 2002.


17. DESIGN OF PLANT MANAGEMENT SYSTEMS (PMS) USING DIRECT DIGITAL CONTROL (DDC) FOLLOWING THE CRITERIA ESTABLISHED IN MEDCOM SPECIFICATION 1000: Gerald Spencer, PE completed the week long Corps of Engineers Energy Management Control Systems (EMCS) Design Course in Huntsville, Alabama.  Gerald Spencer, PE completed the Programmable Logic Controller (PLC) and Distributed Control System (DCS) training classes taught by the Instrument Society of America (ISA) Instrument Technology Training Program (ITTS). The ITTS classes were addressing systems of 2,000 points.  Gerald Spencer, PE has completed the replacement design of the NASA Man Rated Space Chambers “A” & “B” Instrumentation and Control System with a new 15,000 point system served by multiple host Central Processing Units (CPU), remote stand alone Programmable Logic Controller (PLC) control/communication modules, multiple remote I/O modules, and dual data transmission  medium data highway.  We are leaders in instrumentation design but attend these courses not to learn, but to keep our design nomenclature similar to the evolving nomenclature in the control & instrumentation industry.

17.1.    SCADA & UCS SYSTEMS:  The Supervisory, Control and Data Acquisition (SCADA) systems and Utility Control Systems (UCS) is the current nomenclature for EMCS systems that control utilities in addition to the Traditional HVAC and Lighting systems controlled by EMCS systems.

17.2.    BUILDING INFORMATION SYSTEMS:  Building Information Control Systems such as life safety, intrusion detection, closed circuit TV security monitoring, door control, and fire safety can be integrated into the UCS, but the life safety fire detection/control must usually stand alone in order to meet the requirements of NFPA codes.

17.3.    RECENT SCADA SYSTEM DESIGNS:  We have recently been the AE of record for SCADA systems for the following Projects:
HANGER 42 - CORPUS CHRISTI NAS, TX - 1996  
ASRM TRAINER - CORPUS CHRISTI NAS, TX - 1996
BUILDING 129 - WHITE SANDS MISSILE RANGE, NM - 1995   
BUILDING 128 - WHITE SANDS MISSILE RANGE - 1995
MINE WARFARE CENTER - U S NAVY - INGLESIDE NS, TX - 1995   
KELLY AFB CHAPEL ADDITION - KELLY AFB, TEXAS - 1994
FM RADIO CONTROLS FOR LOAD SHEDDING - FT. HOOD, TEXAS - 1985   
NASA-JSC - BLDG 29 - REHAB HVAC SYSTEMS - 1992
NASA-JSC -BLDG 111 - EMPLOYMENT & INDUSTRIAL BUILDING - 1992   
NASA-JSC - BLDG 343 - METROLOGY BUILDING - 1993
FM RADIO CONTROLS / LOAD SHEDDING - FT. BLISS, TEXAS - 1986
FM RADIO CONTROLS / LOAD SHEDDING - FT. HOOD, TX - 1985
FM RADIO CONTROLS / LOAD SHEDDING - FT. SAM HOUSTON, TX - 1986

17.4.    OLDER EMCS SYSTEMS:  Gerald Spencer, PE has been designing EMCS systems for many years. Older EMCS systems designed by Gerald Spencer, PE are as follows:
FY-77 DENTAL CLINIC - FT. HOOD, TEXAS - 1977 
200 MAN BOQ - FT SAM HOUSTON, TEXAS - 1971
FY-76 DENTAL CLINIC - FT. HOOD, TEXAS - 1976   
FY-75 DENTAL CLINIC - FT. HOOD, TEXAS - 1975
AIR CONDITION EXISTING ENLISTED WOMEN’’S BARRACKS - FT SAM HOUSTON - 1973
AIR CONDITION 4 EXISTING BOQ’’S FT. HOOD, TEXAS - 1973
AIR CONDITION EXISTING CENTRAL PROCESSING CENTER - FT. HOOD - 1972
AIR CONDITION 14 EXISTING BARRACKS FT. HOOD, TEXAS - 1971

17.5.    DATA AQUISITION SYSTEMS: 
Gerald Spencer, PE is has designed many Data Acquisition systems over the past 25 years, including the 16,000 Point (24,000 point capacity) Distributed Control System (DCS) for the chamber operations at Building 32, NASA Johnson Space Center.  This is the large space simulation chambers A (the largest in the world) & B.  This is a stand-alone info-highway for test data acquisition, test data logging, space simulation systems control, space simulation systems monitoring, cryogenic systems control, solar simulation systems control, helium refrigeration systems control, and cryo-pumping systems control.



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Gerald Spencer, P.E. has more than 50 years experience serving as the Engineer of Record responsible for the design and construction of the MEP portions of more than 1300 building construction projects since 1968 including more than 30 years of preparing forensic engineering reports. Gerald Spencer, P.E. has also been providing licensed professional engineering expert opinion and testimony concerning HVAC, electrical, plumbing, cryogenics, ventilation, construction contract compliance, construction cost  estimating, construction contract acquisition, construction contract administration, and other construction matters for attorneys with  since 2001.